Covidien to pay up to $230M for Maya Medical

May 9, 2012 – Still riding an acquisition wave, global healthcare products provider Covidien (NYSE: COV) has acquired nascent hypertension product company Maya Medical of Campbell, Calif., for $60 million in cash upfront plus up to $170 million more if certain regulatory and sales milestones are achieved, according to a Form 10-Q filed May 4 with the U.S. Securities and Exchange Commission. The acquisition was made in April. Covidien, based in Dublin, Ireland, and with U.S. headquarters in Mansfield, said today that it would introduce a new hypertension treatment at the EuroPCR Congress in Paris, France, on May 16. That product, called OneShot, is from Maya Medical, though the announcement from Covidien does not specifically name the company. OneShot is trademarked by Maya, the second of a portfolio of companies that have been formed out of Shifamed LLC, a Silicon Valley-based medical device incubator. The ablation product is designed to treat patients with hypertension who are not responsive to traditional medical therapy. OneShot technology received European CE mark clearance in February 2012.

“For the large subsets of patients who have refractory hypertension and are unresponsive to traditional pharmacologic agents, the field of catheter-based renal denervation holds enormous promise,” Dr. Mark A. Turco, chief medical officer of vascular therapies at Covidien, said in a prepared statement. “We believe that the OneShot system will provide advantages over existing devices.”

Maya is only one of a series of recent acquisitions listed by Covidien in the SEC filing. On January 5, Covidien acquired BÂRRX Medical Inc., a developer of bipolar radio frequency ablation devices used in the treatment of Barrett’s esophagus syndrome, for total considerations of $393 million. The total purchase consideration was comprised of an upfront cash payment of $322 million, net of cash acquired of $16 million, and the fair value of contingent consideration of $71 million. The contingent consideration, which could total $75 million, consists of a milestone payment related to the achievement of health insurance coverage targets for procedures utilizing BÂRRX devices. The acquisition of BÂRRX expands Covidien’s ability to treat gastrointestinal diseases.

This month, Covidien bought Newport Medical, a designer and manufacturer of ventilators, for approximately $108 million in cash. The filing said the acquisition of Newport Medical complements Covidien’s existing portfolio of acute care and home care ventilation solutions and broadens its ventilation platforms.

In March, Covidien entered into a definitive agreement to acquire superDimension Ltd., a developer of minimally invasive interventional pulmonology devices, for approximately $300 million in cash, with possible future earnout payments of up to $50 million based on the achievement of specific milestones. The acquisition of superDimension will allow Covidien to deliver more comprehensive solutions in the evaluation and treatment of lung disease. The transaction is subject to customary closing conditions, including receipt of certain regulatory approvals, and is expected to be completed during the third quarter of fiscal 2012.

In April 2012, the company entered into a definitive agreement to acquire Oridion Systems Ltd., a developer of patient monitoring systems, for approximately $300 million in cash, net of cash acquired. The acquisition complements Covidien’s existing product portfolio of pulse oximeters and monitoring products. The transaction is subject to the approval of Oridion’s shareholders and customary closing conditions, including receipt of certain regulatory approvals. The transaction is expected to be completed during the third quarter of fiscal 2012.

Shares of Covidien were down 1.74 percent to $54.06 in late morning trading.